A country can still gain from trading certain goods even though its trading partners can produce those goods more cheaply. How is known this principle?

Related Mcqs:

1. A country can still gain from trading certain goods even though its trading partners can produce those goods more cheaply. How is known this principle ?

   A. Relative Advantage
   B. Complete Advantage
   C. Comparative Edge
   D. Comparative Advantage

2. Mention an international trade policy competitive devaluation and increased protective barriers that one country institute to gain at the expense of its trading partners ?

   A. Nationalist policy
   B. Domestic policy
   C. Protectionist policy
   D. Beggar-thy-beighbour

3. The arrangement where goods imported from trading partners in the developing world are subject to lower tariff rates than goods from other countries is referred to as ?

   A. normal trade relation status
   B. most favored nation status
   C. offshore assembly provisions
   D. Generalized System of Preferences

4. The comparative advantage comes if each trading partners has a product that will bring a better price in another country than it will at home. Which economist proposed the principle of comparative advantage ?

   A. Adam Smith
   B. David Ricardo
   C. David Smith
   D. Adam Ricardo

5. Assume that Country A is relatively abundant in labor and Country B is relatively abundant in land Note that wages are the returns to labor and rents are the returns to land According to the factor price equalization theorem, once Country A begins specializing according to comparative advantage and trading with Country B: A. wages and rents should fall in Country A B. wages and rents should rise in Country A C. wages should rise and rents should fall in Country A D. wages should fall and rents should raise in Country A ?

   XA. wages and rents should fall in Country A
   B. wages and rents should rise in Country A
   C. wages should rise and rents should fall in Country A
   D. wages should fall and rents should raise in Country A

6. Under adjustable pegged exchange rates, if the rate of inflation in the United States exceeds the rate of inflation of its trading partners ?

   A. U.S exports tend to rise, and imports tend to fall
   B. U.S imports tend to rise, and exports tend to fall
   C. U.S foreign exchange reserves tend to rise
   D. U.S foreign exchange reserves remain constant

7. Under managed floating exchange rates if the rate of inflation in the United States is less than the rate of inflation of its trading partners the dollar will likely ?

   A. appreciates against foreign currencies
   B. depreciates against foreign currencies
   C. be officially revalued by the government
   D. be officially devalued by the government

8. Asset that is easily and cheaply turned into cash-notably, cash itself and short-term securities are known as______________?

   A. Liquid asset
   B. Solid asset
   C. Hard asset
   D. None of these

9. Major trading partners of the United States including all of the following countries except ?

   A. Canada
   B. Mexico
   C. China
   D. North Korea

10. Which of the following information forms available to the marketing manager can usually be accessed more quickly and cheaply than other information sources ?

    A. Marketing intelligence
    B. Marketing research
    C. Customer profiles
    D. Internal databases